This watchdog blog, by journalist Norman Oder, offers analysis, commentary, and reportage about the $4.9B project to build the Barclays Center arena and 15-16 towers at a crucial site in Brooklyn. Dubbed Atlantic Yards by developer Forest City Ratner in 2003, it was rebranded Pacific Park Brooklyn in 2014 after the Chinese government-owned Greenland Group bought a 70% stake going forward. As of 2018, after the arena and four towers were built, Greenland will own 95% of future construction.

Below is an excerpt. Bloomberg TV offers a profile as well as a full interview, about a half-hour. (Note that the Bloomberg TV pieces didn't work for me on Firefox.)

The NBA effect

True Hoop blogger Henry Abbott concluded that, however much like a segment of "Lifestyles of the Rich and Famous," the 60 Minutes piece would help Prokhorov attract players to the Nets.

Prokhorov's already provoked a man-crush from fans on the NetsDaily blog. "This Guy is Awesome!" wrote corey447. "How could LeBron [James] say “no” to this guy?" Responded Net Income, the lead writer for the site (and unflagging advocate of the Brooklyn move), "I surely can't."

He also asserted that Prokhorov displayed "the same winning personality he did with 60 Minutes," a partial echo of the Rev. Herbert Daughtry's Brooklyn Standard endorsement of Bruce Ratner's customary "humble, winsome" manner.

Yahoo's Adrian Wojnarowski gave fans even more of a buzz, writing that "sources say they expect his private plane to land with him and minority owner Jay-Z at Akron-Canton Airport at midnight July 1 on the start of free agency" to try to recruit Cleveland Cavaliers star James.

Yeah, there's a lot of momentum.

I also agree with Abbott's observation that NBA Commissioner David Stern was hardly convincing in claiming that the league's investigation found no dirt on Prokhorov, given that the NBA wasn't even able to find "the degenerate gambler on their referee staff."

On the merits?

But I part ways with Abbott when he concludes that watching Prokhorov is "the best evidence there could be that he's above board. Watching him speak, it's easy to understand how a guy like this would have become a billionaire on his own merits."

Really?

Prokhorov is obviously very sharp, and full of backed-by-bucks self=confidence, but Russia was and in many ways remains the Wild West when it comes to business.

Despite its generally softball nature, the 60 Minutes piece at least noted that a key source of Prokhorov's wealth, Norilsk Nickel, came via an "insider's opportunity," a process "probably not even legal under Western standards."

Helmer's graphic directly connected Prokhorov and the billionaire owner of the Bloomberg media properties, who just happens to be New York City's mayor. While it's hardly likely that Mayor Mike Bloomberg interferes directly with his publications, it's not out of the question that Bloomberg editors, ushering in the owner of a team and project Bloomberg has welcomed, would only go so far.

After all, the profile portrays Prokhorov as an enormously successful businessman, while Helmer suggests there are some missing elements to the story.

Among Helmer's questions:

--in your report of the January 2007 Courchevel arrest and the subsequent imprisonment of Mr Prokhorov in Lyon, and the investigation that followed for two further years, you appear to have ignored the evidence of obstruction of justice and blocking of efforts of the French investigating magistrates to question witnesses and pursue evidence? Are you unaware of the documented French evidence, published in the French press, suggesting that Mr Prokhorov used influence with Russian officials to prevent the French investigation from being undertaken and completed?

– in your report of the founding and operation of Mr Prokhorov’s Uneximbank, you report: “Doing business in Russia in the 1990s came down to survival of the fittest”. You also report that “the Soviet banking system began collapsing with the fall of communism”. Is there a reason you omit to report that Uneximbank collapsed in 1998, defaulting on an estimated $1 billion in liabilities? To whom should the responsibility, fault or credit for that bank failure go? Why do you withhold from your readers the evidence that such a milestone venture in Mr Prokhorov’s career went bankrupt?

– you report that “Prokhorov and Potanin profited from the crisis by exploiting the dollar-ruble exchange rate”. Why have you omitted to report that Mr Prokhorov’s wager on the rouble-dollar exchange rate in 1997-98 helped push Uneximbank into bankruptcy?

– there are two other omissions of the record of Mr Prokhorov, which your article reveals. Have you omitted recent statements by high-ranking Russian and US officials, casting negative light on Mr Prokhorov’s character and business practices, because you were intending to do, or had agreed with Mr Prokhorov, to do a promotion? Or because you were unaware of the officials and their criticisms? . The first of the criticisms of Mr Prokhorov came from the Prime Minister of Russia, Vladimir Putin, who criticized him for his management of the utility company TGK-4 for what might — in another country or in another medium than Bloomberg Markets — be called investment contract violations or cash stripping. Mr Putin made his statement on February 24. Also, according to Admiral Dennis Blair, the US Government’s Director of National Intelligence, Mr Prokhorov’s line of business in precious metals makes him susceptible to, or a witting party to, the “growing nexus in Russian and Eurasian states among government, organized crime, intelligence services, and big business figures. An increasing risk from Russian organized crime is that criminals and criminally linked oligarchs will enhance the ability of state or state-allied actors to undermine competition in gas, oil, aluminum, and precious metals markets.” Admiral Blair made this and related statements in testimony to the US Senate Select Committee on Intelligence on February 2. Did you miss it?

The profile involves reporter Ryan Chilcote (who also sat down for the one-on-one interview) following Prokhorov around to (natch) his home, his gold mine (via Prokhorov's private jet), and an exclusive nightclub in which the mogul's VIP area is populated by attractive young women.

Chilcote at least knows that he might be used. "Russian billionaires don't tend to share much with journalists," he says in his narration, "but Prokhorov believes it's time for some glasnost. Buying the Nets is the first step to building his profile in the U.S."

"As far as I know, all the NBA owners, they are very important people in their cities," Prokhorov tells him. "And I don't want to be different. And maybe in my case, I need to be much more open."

Chilcote, after experiencing the "parallel universe" of the billionaire's world--a convoy to clear traffic in Siberia--follows Prokhorov back to some madeleines: the now-abandoned factory where he profited by stonewashing blue jeans and the two-room apartment that he left only five years ago.

"It's kind of a miracle," Prokhorov says, recalling his traveling father bringing back tokens of the West, including "Brooklyn chewing gum." Unmentioned: it comes from Italy.

"Have you ever given a bribe?" Chilcote asks.

"It was like, 15 years ago, last time," Prokhorov responds, his syntax indicating it wasn't a first.

Near the end of the piece, Prokhorov gets his money line: "Do you remember the song, Frank Sinatra, 'New York, New York.'? If I make it there, I'll make it anywhere."

And Chilcote/Bloomberg stick with the story line: "The NBA is about to welcome its first Russian billionaire to the league. Prokhorov is about to get his shot."

More from the interview

Prokhorov is nothing if not diplomatic. Chilcote attempts to point out mysterious deaths of important people in prison: "That doesn't happen everywhere, lawyers just die in jail."

"It is true, for the time being, we have awful conditions in jail," says Prokhorov, essentially changing the subject.

Prokhorov took the helm in 2001 and radically restructured the company. The number of workers shrank to 58,000 in 2007 from 125,000 in 2001, as miners and pensioners were taken off the payroll and resettled in different parts of Russia, says Olga Golodets, who ran human resources at Norilsk under Prokhorov.

He also removed from his books social enterprises like nurseries and hospitals, which were part of every big company under the Soviet system.

The Nello exchange

While Chilcote doesn't push too hard on Prokhorov's business issues, he does press regarding the notorious lunch.

Did Prokhorov spend $19,000?

"I don't remember," says Prokhorov. (Check his body language.)

Was there a $5000 bottle of wine?

I don't know," Prokhorov says, grinning. "I need to check."

What about $825 for three orders of truffle taglioni?

"Maybe," allows Prokhorov.

Oligarchs and business

"Are you an oligarch?" Chilcote asks.

"No. For sure not," responds Prokhorov.

"Why not?"

"Oligarch is a person--he's rich and he has a political power," responds Prokhorov.

"You don't have any political power?"

"No," responds Prokhorov, with a shrug. "I'm just a businessman."

"But you have a relationship with the Kremlin," Chilcote follows up. "You know the president."

"Every businessman has a relation with government," Prokhorov responds.

He goes on to acknowledge that "sometimes you need the help of government" in setting up meetings and sometimes lobbyist-type people must be deployed "to make some amendments to the law."

In other words, non-oligarchs have political power.

The shady side

Chilcote recalls seeing "countless so-called 'contract killings.'... You yourself said this was a country of cowboys and there was no sheriff. Did you have to deal with gangsters?"

"No," declares Prokhorov, shaking his head solemnly.

"You lived in a vacuum somewhere," Chilcote responds skeptically.

"My career was a little bit very specific," Prokhorov says, noting his work with a bank.

"Russia's one of the most corrupt countries in the world, as you know," Chilcote notes. "Were you able to completely sidestep that?"

Prokhorov pauses. "Do you know the difference between a rat and a hamster?" he asks, pausing for a smile. "A hamster has better p.r.… Maybe we are suffering from lack of explanation."

In other words, he dodged the question.

"Do you think Russia has an unfairly bad reputation in the West?" Chilcote asks.

"I hope not, but if you ask, maybe we have some problems," Prokhorov responds.

The Nets and Brooklyn

"Give me your five-year plan for the Nets," Chilcote asks.

"We checked thoroughly, what is the potential income for the club, and for the arena," he says, displaying a train of thought that might not have been on-message for the "Brooklyn" groundbreaking he missed March 11. "Maybe we add some other ideas to this business plan, in the future. But this plan showed to us that we can receive profit, compared with so-called "charity support" business in Russia and Europe. I like to win NBA cup, and at the same time create not only great team, but a great business."

Someone surely will tell him it's a team, not a "club," and a championship, not a "cup."

Chilcote says Prokhorov will go a half a billion dollars in debt. Prokhorov says no, it'll be less than $200 million.

(Prokhorov is putting up $200 million to buy 80% of the team and 45% of the arena, and absorbing current and future losses, as well as putting in equity--perhaps $500 million, even more, but most if not all borrowed.)

The Chilcote throws a softball question, pointing out the team's current losses, and losing streak, and "here's how you can make a lot of money."

"As soon as team moves to Brooklyn, it will be absolutely another business model," Prokhorov says, with an excellent grasp of the team's prospects and marketing opportunities. "As soon as arena has been built, and I'm confident… we can create excellent business unit."

"What is it about Brooklyn, that it adds so much?"

"It's New York City," Prokhorov responds.

Chilcote brings up the Knicks.

"New York City suffers from the lack of great competition between two teams," Prokhorov responds. "I am absolutely confident that, as soon as we create a real championship contender, using our competitive advantage, excellent draft picks over the next two years, and 14 excellent top players that are free agent, and we have the lowest salary cap in the league."

"How much money are you prepared to spend building your dream team?" Chilcote asks.

"Dream team is not only a question of money," Prokhorov responds. "It's also management and team spirit. All these three facts together--it's a great team."

And, perhaps, the political advantage that Prokhorov has left to his American partners in Brooklyn.

Prokhorov goes on to talk about wanting to bring NBA training to Russia and to help globalize the game.

The last question involves, natch, business. Will Prokhorov sell stock in the Nets and list the team on a stock exchange?

Prokhorov says maybe.

"If you list it, you cash out."

I hope I would have 80%," Prokhorov responds. "Maybe 51 is enough."

"Are you buying the Nets forever or is this a short-term business deal and in five years you're going to flip the company?" Chilcote asks.

"For me, it's a strategic investment," Prokhorov says.

"Bridge your way into America," Chilcote adds.

"If you buy a business forever, that means it's not a business. It's a hobby," says Prokhorov with a smile. "And if your business reaches the peak, you sell. But it's not high time to speak about that."

While that's part of the lawsuit, more prominent are claims of racial discrimination and retaliation, with black employees claiming repeated abuse by white supervisors, preferential treatment toward Hispanic colleagues, and retaliation in response to complaints.

Two individual supervisors, for example, are charged with referring to black employees as “black motherfucker,” “dumb black bitch,” “black monkey,” “piece of shit” and “nigger.”

Two have referred to an employee blind in one eye as “cyclops,” and “the one-eyed guy,” and an employee with a nose disorder as “the nose guy.”

There's been no official response yet though arena spokesman Barry Baum told the Daily News they, but take “allegations of this kind very seriously” and have "a zero tolerance policy for…

To supporters of Forest City Ratner's Atlantic Yards project, it's a long-awaited plan for long-overlooked land. "The Atlantic Yards area has been available for any developer in America for over 100 years,” declared Borough President Marty Markowitz at a 5/26/05 City Council hearing.

Charles Gargano, chairman of the Empire State Development Corporation, mused on 11/15/05 to WNYC's Brian Lehrer, “Isn’t it interesting that these railyards have sat for decades and decades and decades, and no one has done a thing about them.” Forest City Ratner spokesman Joe DePlasco, in a 12/19/04 New York Times article ("In a War of Words, One Has the Power to Wound") described the railyards as "an empty scar dividing the community."

But why exactly has the Metropolitan Transportation Authority’s Vanderbilt Yard never been developed? Do public officials have some responsibility?

The bi-monthly Atlantic Yards/Pacific Park Community Update meeting June 14, held at 55 Hanson Place, addressed multiple issues, including delays in the project, a new detente with project neighbors,concerns about traffic congestion, upcoming sewer work and demolitions, and an explanation of how high winds caused debris to fly off the under-construction 38 Sixth Avenue building. I'll have more coverage.
Security issues came up several times at the meeting.
Wayne Bailey, a resident who regularly takes photos and videos (that I often use) of construction/operations issues that impact residents, asked representatives of Tishman Construction if the security guard at the sites they're building works for them.
After Tishman Senior VP Eric Reid said yes, Bailey asked why a guard told him not to shoot video of the site, even though he was on a public street.

"I will address it with principals for that security firm," Reid said.
Forest City Ratner executive Ashley Cotton, the …

This graphic, posted in February 2018, is post-dated to stay at the top of the blog. It will be updated as announced configurations change and buildings launch. Note the unbuilt B1 and the proposed--but not yet approved--shift in bulk to the unbuilt Site 5.

The August 2014 tentative configurations proposed by developer Greenland Forest City Partners will change. The project is already well behind that tentative timetable.

How many people are expected?

Atlantic Yards/Pacific Park has a projected 6,430 apartments housing 2.1 persons per unit (as per Chapter 4 of the 2006 Final Environmental Impact Statement), which would mean 13,503 new residents, with 1,890 among them in low-income affordable rentals, and 2,835 in moderate- and middle-income affordable rentals.

That leaves 8,778 people in market-rate rentals and condos, though let's call it 8,358 after subtracting 420 who may live in 200 promised below-market condos. So that's 5,145 in below-market units, though many of them won…

There are obituary notices in the Bowling Green Daily News and the Wichita Eagle, which state:
He was born in Wichita, KS where he attended public Schools and Wichita State University. He lived for many years in Brooklyn, NY, and was employed as a legal assistant. David's hobby was cartography and had an avid interest in Mass Transit Systems of the world. David was predeceased by his father, Kenneth E. Sheets. He is survived by his mother, Wilma Smith, step-brother, Billy Ray Smith and his wife, Jane all of Bowling Green; step-sister, Ellen Smith Alexander and her husband, Jerry of Bella Vista, AR; several cousins and step-nieces and step-nephews also survive. Memorial Services will be on Monday, January 22, 2018 at 1:00 pm with visitation from 10:00 am to 1:00 pm Monday at Johnson-Vaughn-Phe…

Notably, a lease valued at $40 million "upfront to lease up to 43 acres over 49 years... seems like a good deal on rent for the state-controlled property." Also, the Long Island Rail Road will expand service to Belmont.

That indicates public support for an arena widely described as "privately financed," but how much? We don't know yet, but some more details--or at least questions--have emerged.

An Aqueduct comparable?

Well, we don't know what the other bid was, and there aren't exactly parcels that large offering direct comparables.

But consider: Genting New York LLC in September 2010 was granted a franchise to operate a video lottery terminal under a 30 year lease on 67 acres at Aqueduct Park (as noted by Gov. Andrew Cuomo).

At right is a photo of a poster spotted in Hasidic Williamsburg right. Clearly there's an event scheduled at the Barclays Center aimed at the Haredi Jewish community (strict Orthodox Jews who reject secular culture), but the lack of English text makes it cryptic.

The website Matzav.com explains, Protest Against Israeli Draft of Bnei Yeshiva Rescheduled for Barclays Center:
A large asifa to protest the drafting of bnei yeshiva in Eretz Yisroel into the Israeli army that had been set to take place this month will instead be held on Sunday, 17 Sivan/June 11, at the Barclays Center in Downtown Brooklyn, NY.
So attendees at a big gathering will protest an apparent change of policy that will make it much more difficult for traditional Orthodox Jewish students--both Hasidic (who follow a rebbe) and non-Hasidic (who don't)--to get deferments from the draft. Comments on the Yeshiva World website explain some of the debate.